AHDB Pig Market Weekly

AHDB UK Market Survey - 25 May 2012

HMRC data shows that in the first quarter of 2012 the UK
exported a fifth more red meat offal than it did in the
corresponding period of 2011, with volumes totalling
13,700 tonnes.

UK offal exports grow

With higher prices being paid the value of
this trade increased 37 per cent to £12.2 million. This
increase in trade was against a drop in production of five
per cent.

The bulk of this offal was from pigmeat production with
this product representing well over half of red meat offal
exports. Shipments of this totalled 9,100 tonnes, an
increase of 22 per cent on 2011 levels. The main
destination was the Netherlands which accounted for over
a quarter of shipments. Overall EU-27 Member States took
two thirds of pigmeat offal exports from the UK with a
number of Asian countries also taking a significant
proportion. There was a considerable increase in the unit
values of these exports with the total value increasing by
56 per cent to £7.0 million.

Exports of sheep offal almost doubled to 1,300 tonnes. The
vast majority of these shipments were destined for the EU.
However the importance of the non-EU market grew,
accounting for over a fifth of shipments compared with
only nine per cent a year before. The value of these
exports also nearly doubled to £1.6 million as unit values
increased slightly.

Beef offal volumes went against the trend and recorded a
marginal decrease, to 3,300 tonnes, as production was
eight per cent lower due to fewer cattle being slaughtered.
The majority of shipments went to non-EU trading
partners, accounting for 53 per cent of volumes. Within
these markets the main trend was large increases to various
African countries generally at the expense of far eastern
markets. The value of these exports increased by almost
one per cent to £3.6 million as a result of slightly increased
unit values.

Exports of poultry offal were also higher than 2011 levels,
recording an increase 57 per cent to total 9,000 tonnes.
Non-EU markets accounted for almost three quarters of all
poultry offal exports with a number of Asian and African
countries recording considerable increases on 2011 levels.
Unit values were also higher with the total value of these
exports up almost two thirds at £5.6 million.

Pig market trends

Prices

Deadweight pig prices continued their seasonal
upward trend during week ended 19 May, with the
EU-spec DAPP rising by 0.63p to average 149.02p
per kg. In recent weeks, the rate of increase has
been lower than during the spring of 2011 as poor
weather reduced consumer demand and the
weaker euro reduced the competitiveness of British
pig meat. Estimated slaughterings remain
comfortably above 2011 levels, another reason
why the price rise is less rapid than a year ago.

The weaner market remains difficult, with
finishers reluctant to take on higher numbers
while feed prices remain high. The average 30kg
weaner price eased back by a few more pennies
to £44.21 per head for week ending 26 May, its
lowest level since before Christmas.

The weakening of the euro has led to some
easing back of the cull sow price since late March
as the GB price tends to be close to the price in
Germany, the main market for sow meat. The fall
in prices continued during week ended 19 May
with the average price dropping just over a penny
to 116.42p per kg dw.

Regional Slaughterings

UK clean pig slaughterings in April 2012 totalled
934,000 head, five per cent higher than in April
2011. Both England & Wales and Northern
Ireland recorded increased clean pig
slaughterings, up six and seven per cent
respectively. Scottish throughputs were down
four per cent, reflecting the reduction in the
Scottish herd recorded in the December census.
Nevertheless, Scottish clean pig throughputs in
the first four months of 2012 were still seven per
cent higher than a year earlier. Across the UK,
total clean pig slaughterings in the year to date
were three per cent up year on year at 3.41
million head.

Slaughterings of cull sows and boars during April
totalled 24,500 head, almost all in England. This
was four per cent higher than AHDB’s estimate
for April 2011. Throughputs for the January to
April period were two per cent above year earlier
levels.

The average clean pig carcase weight during
April was marginally higher than a year earlier at
77.8kg, as was the average carcase weight for
cull sows and boars at 152kg. The net result was
that total pig meat production in April was six per
cent higher than a year earlier at 76,000 tonnes.
Total production for the year to date was up three
per cent at 282,000 tonnes.